Schedule pound to dollar at intervals of 4 hours
Sterling declined against the stronger dollar on Tuesday. Today there is no significant data on the economic calendar, with the result that analysts have focused on the upcoming decision of the British government to fully resume the economy.
The pound has been trading in a consolidation mode against the dollar for three weeks now, stuck in the $ 1.41-42 range. Analysts say its recent moves have been largely driven by the dollar, as strong US economic data is making investors nervous about a possible tightening of the Federal Reserve’s policy.
By 08:17 GMT, the pound sterling fell 0.3% against the dollar to $ 1.4135. Against the euro, it fell 0.2% to 86.10 pence.
Sterling is the second-most profitable G10 against the dollar this year, behind only the commodity-dependent Canadian dollar and has been boosted by expectations of a faster recovery in the UK economy amid its vaccination program.
Those hopes have faded somewhat in recent weeks, however, as the rise in infections with the COVID-19 strain, first discovered in India, has prompted calls by some scientists to push the re-discovery date.
Health Secretary Matt Hancock said Sunday it was “too early” to talk about the June 21st plan.
“There is no data in the UK this week that could move the market, and expectations ahead of the government’s June 14 statement on whether or not to finally lift restrictions on Covid-19 on June 21 may remain a major topic of discussion,” the strategists said in a note. ING.
“However, we doubt that a possible delay in full reopening could have a significant impact on the pound sterling.”
ING also noted in a note on Monday that weekly volatility and shifts in the pound’s positioning were not accompanied by excessive movements in the spot market, suggesting that fluctuations may be related more to reporting formalities than to actual changes in market sentiment for the currency.
Speculators cut their net short positions in the dollar last week, according to Reuters calculations and data from the US Commodity Futures Trading Commission released Friday. However, the overall net position for the pound sterling remains long, which means that the market is in balance, betting on strengthening.
UK retailers reported a significant increase in sales in May after isolation measures ended a month earlier and the relaxation of COVID restrictions in the hospitality sector attracted more shoppers to city centers, industry data showed on Tuesday.
The British retail consortium said total sales among its members, including supermarkets and chain stores, were 10.0% higher last month than in May two years ago.